Three other money changers also saw a decrease since the rate dropped to 3.10 two weeks ago - 30 per cent for Mustafa's Foreign Exchange, 20 per cent for True Blue Money Changer at Lucky Plaza and 25 per cent for AR Money Exchange at Bishan.

Mr Vishnu Varathan, a senior economist at Mizuho Bank, said the stronger ringgit is most likely due to the Malaysian central bank, Bank Negara Malaysia, relaxing its controls on foreign exchange.

CONFIDENT

He said: "Investors are now confident to plough back money into Malaysian bonds, as confidence to re-enter the Malaysian market was partially restored by its enhanced ability to manage foreign exchange risks."

He added that stabilising oil prices could also be a factor for the strengthening ringgit.

"But the ringgit will continue to fluctuate as there is a lack of clear direction," he said.

CIMB economist Song Seng Wun added that external and domestic factors can affect the ringgit.

He said: "External factors will be the strength or weakness of the US dollar and commodity prices.

"In this situation, the US dollar was weaker the past two weeks (so the ringgit strengthened against the US dollar)."